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Surviving the Talent Crisis
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Surviving the Talent Crisis
Speaker: Gordon Ritchie Product Evangelist, Enterprise Talent Frameworks IBM
Moderator: Kellye Whitney
Associate Editorial Director Chief Learning Officer magazine
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Surviving the Talent Crisis
Kellye Whitney Associate Editorial Director Chief Learning Officer magazine
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Gordon Ritchie Product Evangelist, Enterprise Talent Frameworks IBM
Surviving the Talent Crisis
© 2014 IBM Corporation
Surviving the Talent Crisis Gordon Ritchie, Product Evangelist. Smarter Workforce Talent Frameworks
© 2014 IBM Corporation
IBM Smarter Workforce
Agenda
Ø Why we don't understand what skills make up the gap. Ø How to quantify the importance of understanding the skills gap's impact
on revenue, expenses, etc. Ø Why it's critical to have a start and an end to be able to measure a gap. Ø How to transform the gut feel that you have a skills gap into an objective
data source.
© 2014 IBM Corporation
Do we understand what skills make up “the gap”, our skills gap?
© 2014 IBM Corporation
IBM Smarter Workforce
What is the capability of the organization - the strengths and weaknesses? How many people have each competency and what is their level of mastery?
What are the areas of risk? Which people have key competencies in the organization? How can we plan for their potential departure?
Organization Capability?
© 2014 IBM Corporation
IBM Smarter Workforce
What competency gaps do we have which would prevent us from meeCng our business objecCves? How will these impact each funcCon within the organizaCon?
Team competency gap analysis
© 2014 IBM Corporation
IBM Smarter Workforce
How do our team managers know which employees require the greatest development? And which competencies should they target for development?
Employee competency gap analysis
© 2014 IBM Corporation
IBM Smarter Workforce
How can we find out who does what in the organization so that we can put the right people on the right project?
Subject matter Expert identification
© 2014 IBM Corporation
IBM Smarter Workforce
What is meant by “talent”? Ø Aptitude or Ability? Ø Capability or performance? Ø Skills or Behaviours? Ø Competency or Values? Ø Human Capital? Ø Education/Schooling?
What is meant by “gap”? Ø A gap is a measure of distance
between two points. Ø To have a gap, you need to know
A) the start point B) the end point Skill Innovation
Definition Develops new ideas and initiatives that improve the organization's performance.
Level 2: Working
Experience
Seeks new or non-traditional ideas to improve effectiveness in own area of responsibility.
Participates in efforts to develop ideas generated by team members.
Seeks applicable new ideas and approaches.
Surfaces ideas from other groups that have applicability to the team.
Helps develop implementation plans for introducing innovations to the group.
Level 3: Extensive Experience
Encourages exploration of non-traditional ideas from team members.
Seeks new or non-traditional ideas to improve effectiveness in team's area of responsibility.
Fosters a team culture that encourages exploration of non-traditional ideas.
Guides team members in the development and fulfillment of proposed innovations.
Develops change initiatives that target improvement of significant organizational capabilities.
Implements strategies for renewing or deepening change efforts.
© 2014 IBM Corporation
IBM Smarter Workforce
Organizational maturity to define its skills and assess the gap
BUSINESS AREA Level 1 AWARENESS
Level 2 TACTICAL
Level 3 STRATEGIC
Level 4 CULTURAL
Processes 1-3 ad hoc 1 -5 repeatable 6-10 repeatable Many repeatable
Business Unit - Learning Basic Learning Expanded Align Learning Strategy Learning seamless in business strategy
Business Unit – Talent Mgmt Paper Basic / Digital Expanded Seamless in driving business results
Content Basic HR / Groups By Role & Level Very specific
Competencies Types: Core, Leadership, Technical?
Core / Paper Core / Digital Job Specific / Digital Comprehensive
Curriculums Basic / Paper Expanded By Role Many levels
Metrics / Testing Basic / Paper By Role By Competency Many Levels
Reporting Basic Expanded High Many Levels
SYSTEMS
Learning Mgmt System Basic: 1-2 years Expanded: 3-4 years
High: 5+ years Customized
Talent/Performance/Skills Basic / Paper Basic / Digital Expanded High
Webcasting / Collaboration Basic Expanded High Integral
Back Office Basic / Manual Expanded / Manual Basic Integration Tight Integration
© 2014 IBM Corporation
IBM Smarter Workforce
Challenges defining skills
Source: Competencies, Compensation and Technology Luncheons.- 2012
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0%
Manual process
Budget Constraints
Too difficult to define
competencies
Too many jobs
Lack of executive support
And what do we mean by skills anyway?
© 2014 IBM Corporation
IBM Smarter Workforce
So lets say “skills” or “competencies,” …
• Core • Leadership • Functional • Technical • Behavioural • Traits • CARS • BARS • Proficiency levels • Assessment
• Time consuming • Hard to do • Hard to prove ROI • No impact • Tried it • Tried it again, • Done them • Someone else did some too • Too HR • Not important or relevant • Fewer = easier
© 2014 IBM Corporation
IBM Smarter Workforce
We’re Aligned to the Organizational hierarchy
Functions and
Families
Core and
Leadership
Jobs and
Roles
• Reflects strategy and culture • Defines expectations at each level • Enables a leadership pipeline
• Reflects functional strategy and key skills
• Applies to all functional incumbents and candidates
• Reflects job-specific knowledge and skills • Well suited for skills assessment
and development • Applies to incumbents and candidates by
position
Getting Started
Org Strategy
Job Skills
Department Strategy
© 2014 IBM Corporation
IBM Smarter Workforce
Focus efforts on the biggest area for impact
Functions and
Families
Jobs and
Roles
• Reflects strategy and culture • Defines expectations at each level • Enables a leadership pipeline
• Reflects functional strategy and key skills
• Applies to all functional incumbents and candidates
• Reflects job-specific knowledge and skills • Well suited for skills assessment and
development • Applies to incumbents and candidates by
position
PRODUCS/SERVICES/CUSTOMERS
Core and Leadership
Scale Impact Volume Turnover Repetition
© 2014 IBM Corporation
IBM Smarter Workforce
“Talent Gaps” Present one of the Biggest Opportunities for HR to make a difference in your organization!
• 66% of CEOs report the absence of necessary skills is their biggest talent challenge
- PwC’s 2013 global CEO Study
• More than 60% of companies cite “capability gaps” as one of their top talent challenges - Bersin by Deloitte 2013
• CEOs rate “human capital shortages” as the number one item on their priority lists for 2014
- Conference board
• 39% of CEOs say they are “barely able” or “unable” to meet the demand for talent
- Deloitte: Disrupting the CHRO
• “Skills are the new arms race…nearly 70% of global organizations feel they lack the required skills to compete...”
- Bersin: Building a Smarter Workforce, 2013
60+% Absence of Necessary Skills
© 2014 IBM Corporation
How to quantify the importance of understanding the skills gap's impact on revenue, expenses, etc.
© 2014 IBM Corporation
IBM Smarter Workforce
25
WHAT ANALYSTS SAY…
“Competencies are the currency of Talent Management”, Josh Bersin, 2007 “…defines“competency management” as, “… The set of pracEces that idenEfy and opEmize the skills and competencies required to deliver on the business strategy.” The Buyers Guide to Competency Management Technology SoluEons, 2013 “Skills are the new arms race; our newest research shows that nearly 70 percent of global organizaEons feel they lack the required skills to compete..” Building a Smarter Workforce, 2013 “..the most criEcal, foundaEonal component of the roadmap is the establishment of job responsibiliEes and competencies… If those iniEal foundaEonal elements are missing, then the rest of the organizaEon’s structures are prone to inconsistency.” Integrated Talent Management: A Roadmap for Success, 2012 “… companies realize they cannot solve their skills shortages externally. To achieve compeEEve advantage, they must commit to developing the right skills internally” Corporate Learning Factbook, 2012
SHRM reported in their 2012 and 2013 Employee Job SaEsfacEon survey that recogniEon for the skills you have is the #1 employee job saEsfacEon issue, above pay, benefits, etc.
© 2014 IBM Corporation
IBM Smarter Workforce
What’s keeping the leaders of your organization awake?
CEOs Report Talent Gaps will directly impact Client Success: • 66% anticipate losing business to competitors • 64% fear a loss of revenue • 53% anticipate delays in innovation • 59% face lower customer satisfaction • 87% say their employees feel more pressure/stress
- Accenture 2013 Skills and Employment Trends Survey
With a belief in training as the answer, to address Talent Gaps at all levels organizations have directly increased their L&D budgets by 11%.
- Bersin by Deloitte
© 2014 IBM Corporation
IBM Smarter Workforce
Putting it all together. Imagine who wouldn’t invest to stop these losses… (data from the Human Capital Institute)
Planning for talent: 70% of organizations have a weak pipeline; cost per day when operating without a key player: $7k Acquiring talent: Cost of a poor hire: $300K-$500K Engaging talent: Rate of efficiency at which most businesses operate because of low engagement: 30% Developing talent: Average time required for a new manager to become productive: 6 months Consider that the # of employees the average manager is multiplied by the number of people who work for them. Deploying/Assigning talent: Percentage of a company’s employees who are well-suited for their roles: 20% Retaining talent: Cost of losing a talented employee: $250K - $500K Evaluating talent: The value of a top performer is 2-4x the performance of average employees
© 2014 IBM Corporation
IBM Smarter Workforce
Competency Assessments that Drive Results
Weak or limited leadership pipeline
Consistency in employee competence
Excessive first year turnover among new hires
Lack of skills to meet organizational needs
Internal challenges to address via assessments
Employee performance
Quality of hire
Employee productivity
Overall turnover
Recruiting costs
Impact of Assessments in Talent Management
Source: Aberdeen 2009 Study; Assessments in Talent Management
© 2014 IBM Corporation
IBM Smarter Workforce
Two areas of cost
Cost of Defining Skills: Build vs buy Multiply the Avg HR hourly rate ($XX) X 40-80 hours per job review X # of jobs Cost of a Job Competency Profile or Library / cost of manual effort.
Time to impact/market: ROI Critical roles at 110% productivity Now vs the number of hours it would take to build before it even hits the employees. Sales = for every $10million in revenue, that’s an extra $1million. Customers = for every $10 spent that’s an extra $1 per customer Payroll = for every $1million of payroll, that’s $100,000 saved.
© 2014 IBM Corporation
IBM Smarter Workforce
FOCUS ON THE JOB AT HAND
§ Develop and use quickly and update over time. § Focus on buy-in and change management
processes. § Make sure you get to the applications; don’t get
stuck in model development
§ Get the “big things right”; “don’t dwell on the small stuff”.
§ Apply existing materials and best practices in developing a rapid draft
§ Focus on the overall architecture
§ Key success criteria and themes.
§ Position models as prototypes for learning how to change behaviors (vs. a perfect output image).
application Integration
Iteration Launch &
Communication Implementation IBM / IBM Competency Development
80% of the effort Recommended Approach 20% of the effort
Typical Competency Development application Integration
Iteration Launch &
Communication Implementation
20% of the effort (if able to move out of development stage)
Typical Approach 80% of the effort
© 2014 IBM Corporation
IBM Smarter Workforce
Job Skills Framework Investment • $XXX,XXX one time fee / XX,XXX employees = $X.XX investment per employee. • What is your average employee tenure? Capitalized over 3 years it’s $X.XX per employee
year • Content investment = cost of 1 employee working full time for a year to develop this
Competency Data Development
• Strategic decisions performed once have major impact, tactical actions performance by many people, many times have an equally major impact but can be less visible.
• If a defined competency with behavioural descriptors of excellent performance across XXXXX people delivers a 10% increase (Aberdeen Group, Assessments 2011) in productivity for that task
• Any internally developed output is a first Version 1 and introspective view.
Greater than the sum of the development
© 2014 IBM Corporation
IBM Smarter Workforce
Applying a Job Competency Framework through your Talent Management software
• Increase in performance by using competencies of over 10% on 15000 employees bottom line cost or contribution:
• Sales * 10% - Project cost = ROI (i.e. improved productivity, reduced hiring costs, etc.)
Succession Planning
• Focus hiring on competency behaviours • 1 correctly placed internal candidate, rather than an external hiring
exercise would pay for the whole investment in the competency data.
ROI Investments
© 2014 IBM Corporation
IBM Smarter Workforce
OD Productivity
• 4+ months to complete current job function.
• Using an 80% complete model, a function could be done in 3-4 weeks.
• That accelerates employee productivity delivering a much quicker bottom line impact.
• What is the employee cost of this time? What is the risk of using only inward looking checkpoints?
Learning and Development Strategies
• Employee allocated 24 hours learning: $1,440 of opportunity/salary cost.
• Across all the impacted employees, you would need to identify only 13 days per year of unnecessary training. This does not take into account any cost associated with learning, and the increased ROI.
ROI Investments
© 2014 IBM Corporation
Why it's critical to have a start and an end to be able to measure a gap.
© 2014 IBM Corporation
IBM Smarter Workforce
COMPETENCIES ARE THE FOUNDATION
Using a Job Competency Framework
provides a Clear, Common and Consistent
language for Talent Management.
It connects processes and enables integration across
HRIS and Talent Management investments, already made.
Functional Job & Competency Framework
Career & Succession
Planning
Learning Needs
Analysis
Risk Analysis
Recruitment & Selection
Resource Planning
Compensation
Performance Management
“Conclusion: The most successful organizations rely on a talent infrastructure that encompasses the right competencies and job profiles as a basis for integration.” Integrated Talent Management: A roadmap for success. Bersin and Associates, 2012
© 2014 IBM Corporation
IBM Smarter Workforce
Organizational Talent Data
What’s your organizational capability? Who needs what learning to be more effective? How can you find your experts? How can you make the most of the talent you have?
© 2014 IBM Corporation
IBM Smarter Workforce
Its Cheaper to grow, than buy.
• How much do you spend on recruitment? • How does that compare to the learning budget? Understand the financial
risk and effort put into buying external experience. • Does your hiring requisition process first come to L&D to mine the talent
pool for internal candidates that can be developed? • Partner with your hiring managers to understand the business needs.
© 2014 IBM Corporation
IBM Smarter Workforce
Throwing money at a problem we haven’t defined
“Yet many don’t know where this spend is focused” Bersin by Deloitte
– In other words, organizations are throwing L&D funds at their talent gaps without actually knowing what gaps they have!
Workforce Science and experience suggests this is the WRONG approach – throwing jelly at a wall does not stick.
Critical steps for success, Bersin by Deloitte: • Build a “global supply chain” for
capabilities • Identify capability gaps today and for
tomorrow • Build a pipeline of “known gaps in the
future” to build a skills supply chain now • Develop people to deepen their skills
where needed
BUT……. Organizations Lack the Tools to Define and Identify Talent Gaps to address Future Talent Needs
• Corporate Learning & Development Spending Topped $130 Billion
© 2014 IBM Corporation
How to transform the gut feel that you have a skills gap into an objective data source.
© 2014 IBM Corporation
IBM Smarter Workforce
The IBM Talent Frameworks
• Functional area with in each industry or expertise
• 6 Job Bands for employees, management and executive matrices
• Job descriptions • Job profiles • Job responsibilities • Job focus • Compensation Market Data
Business – 36 Individual – 28 Management – 22 Leadership – 20 Functional/Technical – 1700
4 Levels of Proficiency with 21 unique behavioral descriptors for action oriented skill observation, evaluation and communication. Each competency has a suggested level of proficiency used for each role.
Competencies (2,000+) Application Accelerators • Learning References (OJT, Web,
References, professional bodies, etc)
• SMART Development Goals • Coaching Tips • Performance Feedback Writing
Assistants • Interview Questions
Designed to engage and optimize use In context. Extends the application of the competency model to support models such as the 70/20/10.
– Banking & Fin Services -- OEM High Tech Software – Construction -- Insurance – Consulting -- Manufacturing – Education -- Media / Publishing – Energy -- Retail – OEM High Tech Hardware - CRM Outsource Mgmt – Pharmaceutical - Real Estate – Healthcare: Clinical/Admin
– General Corporate Functions (HR, Finance, Legal, Sales)
– Information Technology (IT) Operations
Job Families (145+)
Jobs Profiles (2,500+)
Vertical Frameworks General Competency Frameworks
© 2014 IBM Corporation
IBM Smarter Workforce
The 3 phases:
Defining, Assessing and Managing your Skills Gap
Analyze Organizational Capabilities
Set Goals, Objectives and Learning
Analyze and Identify skills gaps
Validate Assessments
Assess Competencies
Map to Organization
Validate Competency Profile
Map Job Roles
© 2014 IBM Corporation
IBM Smarter Workforce
Where you can apply it
Where it helps How it helps What you need
Attracting candidates
Set expectations of who will be successful in the job beyond a job description
Demonstrable behaviours of what you expect
Hiring Decisions
Smarter hiring decisions based on capability to do the job
Interview questions tied to the competency behaviours required
Onboarding Improve chance of success and retention with accelerated time to productivity
Demonstrable expectations of what good looks like
Managing Support managers development discussions with tools to improve trust and impact.
Skill focused coaching tips, SMART goals, and extended expectations for growth
Engagement Provide clear view of portable/mobile skills to engage the engageable.
Reusable competencies across roles, levels and functions to provide skills based career matrix.
Performance Management
Provide job specific performance criteria for evaluation and contribution.
Job specific competencies and expected levels of demonstrable behaviour
Development Drive up learning as its easier to find content in your LMS
Learning catalogue mapped to competencies
Compensation Planning
Understand the jobs you are matching beyond just the salary survey job title.
Match jobs based on skills, tied to excellence as performance to pay.
© 2014 IBM Corporation
Conclusion
© 2014 IBM Corporation
IBM Smarter Workforce
Whats keeping you up?
How can I attract and hire more people just
like my top performers?
How do I foster knowledge sharing and collaboration to drive more innovation?
How do I develop the next generation of leaders for a more global, flexible, and
diverse workforce?
How can I rapidly develop, deploy and optimize
skills and capabilities to match emerging
opportunities?
How do I know if I’m recognizing and
rewarding my employees optimally?
How can I predict what different segments of my employees need and what
actions to take to optimize business
outcomes?
How do I find real-time, hidden, game-changing
insights from data available inside and
outside my organization?
How can I bring people into the organization
so they’re productive from Day 1?
How do I gain continuous insight
into what my employees think of
the organization?
How do I know salary planning is aligned with our business strategy?
© 2014 IBM Corporation
IBM Smarter Workforce
“Talent Gaps” Present one of the Biggest Talent Opportunities in your organization!
• 66% of CEOs report the absence of necessary skills is their biggest talent challenge
- PwC’s 2013 global CEO Study
• More than 60% of companies cite “capability gaps” as one of their top talent challenges - Bersin by Deloitte 2013
• CEOs rate “human capital shortages” as the number one item on their priority lists for 2014
- Conference board
• 39% of CEOs say they are “barely able” or “unable” to meet the demand for talent
- Deloitte: Disrupting the CHRO
• “Skills are the new arms race…nearly 70% of global organizations feel they lack the required skills to compete...”
- Bersin: Building a Smarter Workforce, 2013
60+% Absence of Necessary Skills
© 2014 IBM Corporation
Surviving the Talent Crisis Gordon Ritchie, Product Evangelist. Smarter Workforce Talent Frameworks
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